Enhancing Internal Scrutiny in Academy Trusts: A Comprehensive Approach to Risk Mitigation

The 2023 edition of the Academy Trust Handbook (ATH) has been published with the aim of providing guidance and support to trustees, audit and risk committees, accounting officers, and Chief Financial Officers (CFOs) in academy trusts. Once again, the handbook highlights the importance of academy trusts ensuring that their internal scrutiny programs encompass more than just financial aspects to effectively identify and mitigate risks in academies.

Understanding Internal Scrutiny

Internal scrutiny plays a crucial role in assessing controls and risk management procedures within academy trusts. It involves planning and executing a risk-based exercise that is informed by the trust's risk register. The main objective is to provide advice to the trust board and ensure the adequate identification and management of risks.

Expanding Beyond Finance

While financial matters are undoubtedly important, academy trusts must recognise that risks extend beyond the realm of finance. By adopting a comprehensive approach to internal scrutiny, academies can effectively identify and mitigate a wider range of risks that may impact the overall performance and wellbeing of students and staff. There are many areas of academy community life that should be considered.

Safeguarding and Child Protection

A crucial area that should be addressed through internal scrutiny is safeguarding and child protection. Academy trusts must prioritise the safety and wellbeing of their students. Incorporating robust scrutiny processes to assess safeguarding policies, practices, and training can help identify any weaknesses or gaps that may put children at risk. By taking a proactive approach, academy trusts can create a safe and nurturing environment for their students.

Operational and Compliance Risks

Academy trusts should also focus on operational and compliance risks within their internal scrutiny programs. This includes assessing areas such as health and safety, data protection, and regulatory compliance. By conducting regular audits and reviews, academies can ensure that they are adhering to legal requirements and industry best practices, minimising the potential for costly penalties and reputational damage.

Governance and Ethical Considerations

A robust internal scrutiny program should also encompass governance and ethical considerations. This involves evaluating the effectiveness of governance structures, the conduct of trustees and senior leadership, and the adherence to ethical standards. By instilling a culture of transparency, accountability, and ethical behaviour, academy trusts can foster trust and confidence within their communities.

Identifying Academic Risks

Academy trusts could consider incorporating academic risks into their internal scrutiny programs. This entails evaluating the quality of systems in place for monitoring and managing student attendance and assessment practices. By doing so, academies can identify potential gaps in educational standards and take proactive measures to address them. This approach ensures that students receive the best possible education and helps maintain the trust's reputation.

Collaborative Approach

To achieve a comprehensive internal scrutiny program, academy trusts should encourage collaboration between various stakeholders. Trustees, audit and risk committees, accounting officers, CFOs, and educational professionals should work together to identify potential risks and develop effective mitigation strategies. This collaborative approach ensures that expertise from different areas is leveraged to create a whole-trust risk management framework.

Strictly Education’s Internal Scrutiny Service takes such a collaborative approach by working with your audit committee to identify risks and suggest ways to diminish or eliminate potential problems before they appear. Through the internal scrutiny programme, our consultants will be your trust’s critical friend ensuring that your statutory obligations to internal scrutiny are met, and trust operations are improved.

Academy trusts must recognise the importance of a comprehensive internal scrutiny program that goes beyond finance to effectively identify and mitigate a broad spectrum of risks. By expanding the focus to include safeguarding, operational, compliance, governance and academic considerations, academy trusts can create a safer, more accountable, and high-performing environment for their students and staff. The 2023 edition of the Academy Trust Handbook provides valuable guidance and support in implementing these practices, enabling academy trusts to fulfil their responsibilities effectively.

Download A Guide to Internal Scrutiny eBook

Strictly Education has published a free, informative eBook that will inform academy leaders about successful internal scrutiny programmes. Download a copy from the Strictly Speaking Knowledge Hub.

Book a Discussion with Our Team

To find out more about Strictly Education’s Internal Scrutiny Service, and how we can help your trust meet its obligations you can book a no-obligation 30 minute call with a member of the team. Click here to book a time that suits you.